Summary of Financial Results for Fiscal Period Ended
June 30, 2019
(4th Fiscal Period: from January 1, 2019 to June 30, 2019)

Balance Sheet
Statement of Income and Retained Earnings
Statement of Changes in Net Assets
Statement of Cash Flows
Notes to Financial Statements1

1【Financial Statement】（１）Balance Sheet（Unit：thousand yen）
rd Period

3（December 31, 2018）
AssetsCurrent Assets
Cash and bank deposit
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other current assets
Total current assets
Fixed Assets
Property and equipment
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property and equipment
Intangible assets
Leasehold rights
SoftwareTotal intangible assets
Investments and other assets
Long-term prepaid expenses
Deferred tax assets
Long term deposits
Guarantee deposits
Total investment and other assets
Total fixed assets
Total assets
Liabilities
Current liabilities
Operating Accounts payable
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable
Consumption tax payable
Deposits received
Total current liabilities
Non-current liabilities
Long-term loan payable
Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders’ capital
Deduction from unitholders’ capital
Unitholders’ capital, net
Surplus
Unappropriated retained earnings(Accumulated deficit)
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets*1

2

4th Period(June 30, 2019)

3,222,807
208,913
107,714793,148685
4,333,268

2,466,624
426,756
71,805215
2,965,401

797,621(28,399)769,22137,427,871(1,405,797)
36,022,074
505,287(22,181)
483,106
4,309,021
6,244
41,589,667

835,726(45,417)790,308
38,610,034(2,191,437)
36,418,597
521,176(32,570)
488,605
4,466,771
42,164,283

494,487
2,763
497,250

512,4112,746
515,158

324,500
12
7,800
21,021
353,333
42,440,252
46,773,521

307,42412
7,800
21,021
336,258
43,015,700
45,981,101

25,2901,239,176
56,31773,449857
5,246
1,400,337

26,344
1,286,149
83,003112,673868
49,9041,750
1,560,694

23,057,919
23,057,919
24,458,257

22,227,007
22,227,007
23,787,702

22,050,175(147,209)
21,902,965

22,050,175(567,281)
21,482,893

412,298

710,506

412,298
22,315,263
22,315,263
46,773,521

710,506
22,193,399
22,193,399
45,981,101*1

（２）【Statement of Income】(Unit: thousand yen)rd period

3(from July 1, 2018
to December 31, 2018)
Operating revenues
Rental revenues of renewable energy power
generation facilities, etc.
Total operating revenues
Operating expenses
Rental expenses of renewable energy power
generation facilities, etc.
Asset management fee
Administrative service fees
Director’s compensation
Taxes and duties
Other operating expenses
Total operating expenses
Operating income
Non-operating incomesInterest income
Insurance income
Interest on refund
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing-related expenses
Investment unit issuance expenses
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes - current
Income tax - deferred
Total income taxes
Net income
Retained earnings (deficit) brought forward
Unappropriated retained earnings (Accumulated
deficit)*1

1,785,374

4th period(from January 1, 2019
to June 30, 2019)*1

1,785,374
*1

- 3 -

1,035,958

2,185,392
2,185,392*1

1,234,114

43,934
17,0662,400
1,346
39,9281,140,634
644,739

55,97918,9452,400
399
56,352
1,368,191
817,20117
18,815
1,942
20,77515
27,146
1,355
28,517

97,912
103,408
51,132
252,452
413,062
413,062860
14874
412,187110

106,345
28,083
134,428
711,290711,290870
0870
710,41986

412,298

710,506

（３）【Statements of Changes in Unitholders’ Equity】
3rd Fiscal Period (From July 1, 2018 to December 31, 2018)（Unit: thousand yen）
Unitholders’ equity
Unitholders’ capital

Total
Deduction
unitholders’Capitalfrom
Unitholders’equitysurplus or Total surplus
unitholders’ capital, net
loss
capitalUnitholders’capitalBalance as of July 1,
2018

Surplus17,315,550- 17,315,550

4,734,625-

Distribution inexcess of earnings-

Dividend of surplus
Net Income

Total net
assets281,047

281,047

17,596,597

17,596,597

4,734,625--

4,734,625

4,734,625(147,209)(147,209)--(147,209)(147,209)---(280,936)(280,936)(280,936)(280,936)---

412,187

412,187

412,187

412,187

4,734,625(147,209)

4,587,415

131,250

131,250

4,718,666

4,718,666*1 22,050,175(147,209)

21,902,965

412,298

412,298

22,315,263

22,315,263

Changes of items
during the period
Issuance of new
investment unit

Total changes of
items during theperiodBalance as ofDecember 31, 2018

4th Fiscal Period (From January 1, 2019 to June 30, 2019)（Unit: thousand yen）
Unitholders’ equity
Unitholders’ capital

Surplus

Deduction
Unitholders’fromUnitholders’capitalunitholders’ capital, net
capitalBalance as of January
1, 2019

Total
Capitalunitholders’equitysurplus or Total surplus
loss

Total net
assets

22,050,175(147,209)

21,902,965

412,298

412,298

22,315,263

22,315,263

Distribution inexcess of earnings-(420,072)(420,072)--(420,072)(420,072)

Dividend of surplus

-

-

-

(412,211)(412,211)(412,211)(412,211)Net Income

-

-

-

710,419

710,419

710,419

710,419-(420,072)(420,072)

298,208

298,208(121,864)(121,864)*1 22,050,175(567,281)

21,482,893

710,506

710,506

22,193,399

22,193,399

Changes of items
during the period

Total changes of items
during the period
Balance as of June30, 2019- 4 -（４）【Statements of Cash Distribution】
Fiscal Period under Review(From July 1, 2018
to December 31, 2018)
Unit Yen
Unappropriated retained earnings(accumulated deficit)
II Distributions in excess of retained
earnings
Deduction from unitholders’ capital
III Cash distributions(Cash distributions per unit)
Profit distributions(Profit distributions per unit)
Distributions in excess of retained
earnings(Distributions in excess of retained
earnings)
IV Retained earnings (deficit) carriedforward

Fiscal Period under Review(From January 1, 2019
to June 30, 2019)
Unit: YenI

Calculation method for cash distributions

412,298,211

710,506,353

420,072,230
832,284,000(3,600)412,211,770(1,783)

133,396,630
843,843,500(3,650)710,446,870(3,073)420,072,230(1,817)

133,396,630(577)

86,441

59,483

In accordance with Articles 47,
Paragraph 1 of Canadian Solar
Infrastructure Fund, Inc. (“CSIF’) s
Articles of Incorporation, the amountof cash distributions shall be theamount of profit in excess of anamount equivalent to 90% of
distributable profits, as stipulated in
Article 67-15 of the Act on Special
Measures Concerning Taxation.
Based on this policy, CSIF decided
to make distributions of¥412,211,770 which is the entire
amount equivalent to theunappropriated retained earnings forthe fiscal period under review of¥412,298,211 excluding fractions of
the distribution per unit that are lessthan ¥1.
CSIF distributes cash in excess ofretained earnings every fiscal period
based on the cash distribution policy
prescribed in Article 47, Paragraph 2of CSIF’s Articles of Incorporation.
Based on this policy, CSIF decided
to make cash distributions in excessof earnings (return of capital
categorized as a distribution of the
reduction in capital for Japanese tax
purposes) in the amount of¥420,072,230 which is equivalent to58.9% of the amount of depreciation
expenses recorded for the fiscal
period under review of- 5 -In accordance with Articles 47,
Paragraph 1 of Canadian Solar
Infrastructure Fund, Inc. (“CSIF’) s
Articles of Incorporation, the amountof cash distributions shall be theamount of profit in excess of anamount equivalent to 90% of
distributable profits, as stipulated in
Article 67-15 of the Act on Special
Measures Concerning Taxation.
Based on this policy, CSIF decided
to make distributions of¥710,506,353 which is the entire
amount equivalent to theunappropriated retained earnings forthe fiscal period under review of¥710,446,870 excluding fractions of
the distribution per unit that are lessthan ¥1.
CSIF distributes cash in excess ofretained earnings every fiscal period
based on the cash distribution policy
prescribed in Article 47, Paragraph 2of CSIF’s Articles of Incorporation.
Based on this policy, CSIF decided
to make cash distributions in excessof earnings (return of capital
categorized as a distribution of the
reduction in capital for Japanese tax
purposes) in the amount of¥133,396,630 which is equivalent to16.4% of the amount of depreciation
expenses recorded for the fiscal
period under review of¥713,524,700.
Accordingly, the distribution per unitis ¥3,600.

¥813,434,738.
Accordingly, the distribution per unitis ¥3,650.

(Note) Distributions in excess of retained earnings per unit will generally be based on the cash distribution policy
prescribed in CSIF’s Articles of Incorporation and the Asset Manager’s asset management guideline.
CSIF intends to make cash distributions of NCF within the FCF generated from the renewable energy power
generation facilities. The amount available for distribution shall be calculated by multiplying NCF by the payout
ratio.
Further, CSIF intends to make distributions in excess of retained earnings for each fiscal period in order torealize such policy.
CSIF’s forecasts (including revised forecasts) for each fiscal period are based on the assumption of the Forecast
Power Generation (P50) provided in the independent technical report which is used as a basis for calculating
rents for renewable energy power generation facilities and if actual NCF calculated based on actual power
generation during the applicable fiscal period exceeds forecast NCF, CSIF’s policy is to set “forecast NCF
multiplied by the payout ratio” as the upper limit of the amount of cash distributions for the applicable fiscal
period.
.
On the other hand, if actual NCF is less than forecast NCF, CSIF’s policy is to set “actual NCF multiplied by thepayout ratio” as the amount of cash distributions for the applicable fiscal period.
Based on this policy, CSIF decided to make distributions for the previous fiscal period of ¥832,284,000 which isequivalent to 79.1% of forecast NCF amount for the fiscal period under review of ¥1,052,089,734. Of this,¥420,072,230 which is the amount less of distributions of profit of ¥412,211,770 is distributions in excess ofretained earnings.
Based on this policy, CSIF decided to make distributions for the current fiscal period of ¥843,843,500 which isequivalent to 48.0% of forecast NCF amount for the fiscal period under review of ¥1,758,007,291. Of this,¥133,396,630 which is the amount less of distributions of profit of ¥710,446,870 is distributions in excess ofretained earnings.

- 6 -（5）【Statement of Cash Flow】（unit: thousand yen）
3rd period(From July 1, 2018
to December 31, 2018)
Cash flows from operating activities
Income before income taxes
Depreciation cost
Investment unit issuance expenses
Interest income
Interest expenses
Decrease (Increase) in operating accounts
receivable
Decrease (Increase) in consumption taxes
receivable
Decrease (Increase) in consumption taxes
payableDecrease (Increase) in prepaid expenses
Decrease (Increase) in long-term prepaid
expenses
Increase (Decrease) in operating accounts
payableIncrease (Decrease) in accounts payable - other
Increase (Decrease) in accrued expenses
Other, net
Sub-totalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Purchases of property and equipment
Purchases of intangible fixed assets
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of investment units
Payments for investment unit issuance expenses
Dividends paid
Surplus earning distribution paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at the beginning of the
fiscal period
Cash and cash equivalents at the end of the fiscal
period413,062
713,524
51,132(17)
97,912

711,290
813,434(15)
106,345

109,517(217,843)

1,316,672

793,148-

49,904(92,669)

35,909(94,581)

17,075

7,073

1,053

13,846(6,021)
3,228
2,532,681
17(96,340)(1,468)2,434,890

26,686
39,839(3,024)
2,373,805
15(106,961)(859)
2,265,998(7,800)(11,679,932)(4,885)(11,692,617)(1,387,663)(18,294)(1,405,958)

8,850,000(2,656,191)
4,734,625(51,132)(280,936)(147,209)
10,449,154

700,000(1,483,938)(412,211)(420,072)(1,616,222)

1,191,427(756,182)

2,031,379

3,222,807

*1

- 7 -

4th period(From January 1, 2019
to June 30, 2019)

3,222,807*1

2,466,624

(6) 【NOTES to Financial Statements】[NOTES ON GOING CONCERN PREMISE]
Not applicable.
[SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES]
1.Method of depreciation andamortization of non-current
assets2.Standards for revenue andexpense recognition(1) Property and equipment
The straight-line method is adopted. In addition, the useful lives of major property
and equipment are as shown below:
Structures .................................... 22 - 25 years
Machinery and equipment ............ 22 - 25 years
Tools, furniture and fixtures .......... 22 - 25 years(2) Intangible assets
The straight-line method is adopted. In addition, the useful life is as shown below:
Software....................................... 5 years(3) Long-term prepaid expenses
The straight-line method is adopted.
Accounting for fixed assets tax
With respect to fixed assets tax, city planning tax and depreciable assets tax,
among other taxes, on the infrastructure assets held, of the tax amount assessedand determined, the amount corresponding to the calculation period is accounted
as rental expenses. In addition, reimbursement such as fixed assets tax, which ispaid to the seller and other persons on the acquisition of infrastructure assets andother assets (“the amount equivalent to the fixed assets taxes and other taxes”)
is not recognized as rental expenses but included in the acquisition cost of theconcerned infrastructure assets and other assets. In the fiscal period underreview, the amount equivalent to the fixed assets tax and other taxes included in
the acquisition cost of infrastructure assets and other assets is 6,063 thousandyen.

3.Scope of funds in statement ofcash flows

4.Method of hedge accounting

Funds (cash and cash equivalents) in statement of cash flows consist of cash on
hand, demand deposits and short-term investments with a maturity of three months
or less at the date of acquisition that can readily be converted into cash and thatare subject to insignificant risks of changes in value.
(1) Method of hedge accounting
Special treatment is adopted for the interest rate swap that meets therequirements for special treatment.
(2) Hedging instruments and hedged items:･Hedging instruments……Interest rate swap transaction･Hedged items…………....Interest rate on loans(3) Policy for hedging
CSIF conducts derivative transactions to hedge risks as set forth in the CSIF’s
Articles of Incorporation according to the rules for risk management.
(4) Method of evaluation of effectiveness of hedging
The interest rate swap meets the requirements for special treatment, and thus
the evaluation of effectiveness is omitted.
Accounting
for Consumption tax
5.Other significant matters serving
Consumption
tax and local consumption tax are excluded from the corresponding
as the basis for preparation oftransaction amount.
financial statements[NOTES REGARDING CHANGE OF PRESENTATON METHOD]
Not applicable.

- 8 -[NOTES ON UNAPPLIED ACCOUNTING STANDARDS](Unapplied Accounting Standards)
・Accounting Standard for Revenue Recognition (ASBJ Statement No. 29 published on March 30, 2018 by the
Accounting Standards Board of Japan)
・Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30 published on
March 30, 2018 by the Accounting Standards Board of Japan）
1.Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) havejointly developed a converged accounting standard on revenue recognition and issued “Revenue from Contracts with
Customers” (IFRS 15 by IASB and Topic 606 by FASB) in May 2014. IFRS 15 is effective for annual reporting periods
beginning on or after January 1, 2018 and Topic 606 is effective for annual reporting periods beginning on or after
December 15, 2017. In this connection, the ASBJ developed a converged accounting standard on revenue recognition
and issued the standard together with its implementation guidance.
The ASBJ followed two policies in developing accounting standard for revenue recognition. That is, to incorporate allbasic IFRS 15 requirements to ensure comparability of financial statements, but also to consider additional alternative
treatments based on practices applied by Japanese companies so that the standards would not significantly impair
comparability.
2.Planned date of application
CSIF will apply the standard at the beginning of the fiscal period ending December 2021.
3.Effect of application of the standard
The effect that the application of Accounting Standard for Revenue Recognition will have on the financial statements
is currently under evaluation.
[NOTES TO BALANCE SHEET]*1 Minimum net assets stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment
Corporations(Unit: thousand yen)
As ofJune 30, 2019

As ofDecember 31, 2018
50,00050,000[NOTES TO STATEMENT OF INCOME ]*1 Breakdown of profits and losses from the rental business of renewable energy power generation facilities, etc.

From July 1, 2018 to
December 31, 2018

From January 1, 2019 toJune 30, 2019

A. Operating revenue from the rental business of renewable energy power generation facilities, etc.
Rental revenue of renewable energy power generation facilities, etc.
(Basic rent)(Variable rent linked to actual output)(Incidental income)
Total operating revenue from the rental business ofrenewable energy power generation facilities, etc.
- 9 -1,322,669

1,478,843

462,578

706,346

127

202

1,785,374

2,185,392

B. Operating expenses from the rental business of renewable energy power generation facilities, etc.
Rental expenses of renewable energy power generation facilities, etc.
(Management entrustment expenses)

127,128

144,616

2,055

8,560

(Taxes and duties )154,262

217,138(Utilities expenses)--(Insurance expenses)

12,90017,023(Depreciation expenses)

713,168

813,047(Land rent)

26,44433,727--

Total operating expenses from the rental business ofrenewable energy power generation facilities, etc.

1,035,958

1,234,114

C. Profits and losses from the rental business ofrenewable energy power generation facilities, etc.
（A-B）

749,416

951,278(Repair and maintenance costs)(Other rental expenses)[NOTES TO STATEMENT OF CHANGES IN NET ASSETS]*1 Total number of authorized investment units and the total number of investment units issued and outstanding
From July 1, 2018 to
December 31, 2018

Total number of authorized investment units

From January 1, 2019 toJune 30, 201910,000,000 unit

10,000,000 unit

231,190 unit

231,190 unit

Total number of investment units issued andoutstanding[NOTES TO STATEMENT OF CASH FLOWS]*1 Relationship between the ending balance of cash and cash equivalents and the amounts on the balance sheet(Unit: thousand yen)
From July 1, 2018 to
December 31, 2018

From January 1, 2019 toJune 30, 2019

Cash and deposits

3,222,807

2,466,624

Cash and cash equivalents

3,222,807

2,466,624- 10 -

[NOTES ON LEASE TRANSACTIONS]
Operating lease (as the lessor)
Future minimum lease payments(Unit: thousand yen)
Fiscal period ended

Fiscal period ended

December 31, 2018

June 30, 2019

Within one year

2,957,963

3,039,681

Longer than one year

48,222,398

48,276,834

Total

51,180,362

51,316,516[NOTES ON FINANCIAL INSTRUMENTS]
1.Situation of financial instruments(1) Policy for financial instruments
CSIF procures funds for acquiring new assets or repaying loans through loans from financial institutions or issuinginvestment units. The basic policy is to build stable and sound financial operations to maintain and increase earnings
in the medium to long term and grow the size and value of assets.
(2) Details of the financial instruments and their risks and the risk management system
Long-term loans payables are one of the means to procure the funds for the acquisition of managed assets and are
exposed to interest rate fluctuation risk and liquidity risk, among other risks. However, this risk is deducted throughthe appropriate balancing of the loan period and the interest rate type, and diversification of lenders, and theappropriate management of various types of indexes, especially the general application of the upper limit of the ratio
of interest-bearing, which is 60%.
(3) Supplementary explanation on fair value of financial instruments
The fair values of financial instruments are values based on market prices, or if there are no market prices, values
are reasonably calculated. Since certain assumptions are used for the calculation of fair values, they may change
if different assumptions are used.
2. Matters relating to fair values of financial instruments
The table below shows the book value and fair values of financial instruments as of December 31, 2018 and thedifference between them. Financial instruments whose fair values are extremely difficult to estimate are notincluded in the table.
(Unit: thousand yen)Book value(1) Cash and deposits

Fair value

Difference

3,222,807

3,222,807-

208,913208,913

-

7,800

7,800

-

3,439,520

3,439,520-(4) Current portion of long-termloans payable

1,239,176

1,241,069

1,892(5) Long-term loans payable

23,057,919

23,391,454

333,534

Total liabilities

24,297,096

24,632,523

335,427(6) Derivative transaction

-

-

-

(2) Operating accounts receivable(3) Long-term time deposits
Total assets(Note 1) Methods used for estimating the fair values of financial instruments and matters related to derivativetransactions
Assets(1) Cash and deposits (2) Operating accounts receivable
These financial instruments are settled in the short term, and their fair values are deemed to approximate theirbook value. Therefore, the book values are used as the values.

- 11 -

(3) Long-term time deposits
These financial instruments are time deposits, and their fair values are deemed to be close to their book value as
there is no significant variance between the deposit and the contracted interest rates that are assumed upon a
new cash deposit. Therefore, the book values are used as the values.
Liabilities(4) Current portion of long-term loans payable (5) Long-term loans payable
With respect to long-term loans payable at variable interest rates, the condition that the interest rates are renewed
every certain period is applied to loans, and thus the market value is considered to be close to the book value.
Accordingly, the book value is used. In addition, for the long-term loans payable at variable interest rates subject
to the special treatment of interest rate swap (refer to the “Notes on derivative transactions” below), the fair value
is measured by discounting the total sum of the principal and interest treated together with the said interest rate
swap as one at the interest rate that is applied when the similar loan is obtained and that is reasonably estimated.
(6) Derivative transaction
Please refer to the “Notes on derivative transactions” below.
The table below shows the book value and fair values of financial instruments as of June 30, 2019, and thedifference between them. Financial instruments whose fair values are extremely difficult to estimate are notincluded in the table.
(Unit: thousand yen)Book value(1) Cash and deposits

Fair value

Difference

2,466,624

2,466,624-

426,756

426,756

-

7,800

7,800

-

2,901,181

2,901,181-(4) Current portion of long-termloans payable

1,286,149

1,287,698

1,548(5) Long-term loans payable

22,227,007

22,491,852

264,844

Total liabilities

23,513,157

23,779,551

266,393(6) Derivative transaction

-

-

-

(2) Operating accounts receivable(3) Long term time deposits
Total assets(Note 1) Methods used for estimating the fair values of financial instruments and matters related to derivativetransactions
Assets(1) Cash and deposits (2) Operating accounts receivable
These financial instruments are settled in the short term, and their fair values are deemed to approximate theirbook value. Therefore, the book values are used as the values.
(3) Long-term time deposits
These financial instruments are time deposits, and their fair values are deemed to be close to their book value as
there is no significant variance between the deposit and the contracted interest rates that are assumed upon a
new cash deposit. Therefore, the book values are used as the values.
Liabilities(4) Current portion of long-term loans payable (5) Long-term loans payable
With respect to long-term loans payable at variable interest rates, the condition that the interest rates are renewed
every certain period is applied to loans, and thus the market value is considered to be close to the book value.
Accordingly, the book value is used. In addition, for the long-term loans payable at variable interest rates subject
to the special treatment of interest rate swap (refer to the “Notes on derivative transactions” below), the fair value
is measured by discounting the total sum of the principal and interest treated together with the said interest rate
swap as one at the interest rate that is applied when the similar loan is obtained and that is reasonably estimated.

- 12 -

(6) Derivative transaction
Please refer to the “Notes on derivative transactions” below.

(Note 2) Scheduled redemption amounts of monetary receivable after the closing date (December 31, 2018)(Unit: thousand yen)
Longer than Longer than Longer than Longer thanWithin one one year, two years, three years, four years, Longer thanyear
within two within three within four within five five years
years
years
years
years
(1) Cash and deposits

3,222,807

-

-

-

-

-

(2) Operating accounts
receivable

208,913

-

-

-

-

-

-

7,800

-

-

-

-

3,431,720

7,800

-

-

-

-

(3) Long-term time deposits
Total

Scheduled redemption amounts of monetary receivable after the closing date (June 30, 2019)(Unit: thousand yen)
Longer than Longer than Longer than Longer thanWithin one one year, two years, three years, four years, Longer thanyear
within two within three within four within five five years
years
years
years
years
(1) Cash and deposits

2,466,624

-

-

-

-

-

(2) Operating accounts
receivable

426,756

-

-

-

-

-

-

7,800

-

-

-

-

2,893,381

7,800

-

-

-

-

(3) Long-term time deposits
Total(Note 3) Scheduled redemption amount of loans payable after the closing date (December 31, 2018)(Unit: thousand yen)
Longer than Longer than Longer than Longer thanWithin one one year, two years, three years, four years, Longer thanyear
within two within three within four within five five years
years
years
years
years
(4) Current portion of long-term
1,239,176
loans payable(5) Long-term loans payable
Total

-

2,122,610

1,995,867

1,275,305

1,292,889 16,371,247

1,239,176

2,122,610

1,995,867

1,275,305

1,292,889 16,371,247

Scheduled redemption amount of loans payable after the closing date (June 30, 2019)(Unit: thousand yen)
Longer than Longer than Longer than Longer thanWithin one one year, two years, three years, four years, Longer thanyear
within two within three within four within five five years
years
years
years
years
(4) Current portion of long-term
1,286,149
loans payable(5) Long-term loans payable
Total

-

2,053,702

1,862,492

1,286,533

1,285,273 15,739,005

1,286,149

2,053,702

1,862,492

1,286,533

1,285,273 15,739,005[NOTES ON SECURITIES]
Prior fiscal period (as of December 31, 2018)
Not applicable.
Current fiscal period (as of June 30, 2019)
Not applicable.
- 13 -

[NOTES ON DERIVATIVE TRANSACTIONS]
1. Those to which hedge accounting is not applied
Prior fiscal period (as of December 31, 2018) and current fiscal period (as of June 30, 2019)
Not applicable.
2. Those to which hedge accounting is applied
Prior fiscal period (as of December 31, 2018)(Unit: thousand yen)
Method ofhedge
accounting

Type of derivativetransactions andother matters

Major
items
hedgedSpecialtreatment ofinterest rate
swap

Interest rate swap
transaction
Fixed
payment/variable
receipt

LongtermloanspayableContract amount and otheramounts
Longer than
one year

22,603,027

21,411,430

Fair value

Method ofcalculation ofsaid market
value（Note）-(Note) Those that are subject to special treatment of interest rate swap are treated together with the current portionof long-term loans payable and the long-term loans payable to be hedged as one, and thus their fair value is presented
together with the fair value of (Note 1) (4) Current portion of long-term loans payable and (5) Long-term loans payable
in “Notes on financial instruments 2.Matters relating to fair values of financial instruments, among other matters” .
Current fiscal period (as of June 30, 2019)(Unit: thousand yen)
Method ofhedge
accounting

Type of derivativetransactions andother matters

Major
items
hedgedSpecialtreatment ofinterest rate
swap

Interest rate swap
transaction
Fixed
payment/variable
receipt

LongtermloanspayableContract amount and otheramounts
Longer than
one year

22,012,204

20,811,569

Fair value

Method ofcalculation ofsaid market
value（Note）-(Note) Those that are subject to special treatment of interest rate swap are treated together with the current portionof long-term loans payable and the long-term loans payable to be hedged as one, and thus their fair value is presented
together with the fair value of (Note 1) (4) Current portion of long-term loans payable and (5) Long-term loans payable
in “Notes on financial instruments 2.Matters relating to fair values of financial instruments, among other matters”.
[NOTES ON RETIREMENT BENEFITS]
Prior fiscal period (as of December 31, 2018)
Not applicable.
Current fiscal period (as of June 30, 2019)
Not applicable.

- 14 -

[NOTES ON TAX EFFECT ACCOUNTING]
1. Breakdown of deferred tax assets and deferred tax liabilities by major cause(Unit: thousand yen)
Fiscal period ended
December 31, 2018

Fiscal period ended
June 30, 2019

Accrued business tax not deductible from taxable
income1212Total deferred tax assets

12

12

Net amount of deferred tax assets

1212

2. Breakdown of each major item that causes a significant difference between the effective statutory tax rate andthe rate of the burden of corporate tax and other taxes after the application of tax effect accounting
Fiscal period ended
December 31, 2018
Effective statutory tax rate

Fiscal period ended
June 30, 201931.51%

31.51%(31.45)%(31.47)%

Others

0.15%

0.08%

Rate of burden of corporate tax and other taxes
after the application of tax effect accounting

0.21%

0.12%

(Adjustment)
Dividends paid deductible for tax purpose[NOTES ON SHARE OF PROFIT (LOSS) OF ENTITIES ACCOUNTED FOR USING EQUITY METHOD, ETC.]
Prior fiscal period (as of December 31, 2018)
Not applicable.
Current fiscal period (as of June 30, 2019)
Not applicable.
[NOTES ON RELATED PARTY TRANSACTIONS]
1.Major corporate unitholders
Prior fiscal period (from July 1, 2018 to December 31, 2018)
Not applicable.
Current fiscal period (from January 1, 2019 to June 30, 2019)
Not applicable.
2.Affiliates
Prior fiscal period (from July 1, 2018 to December 31, 2018)
Not applicable.
Current fiscal period (from January 1, 2019 to June 30, 2019)
Not applicable.
3.Fellow Subsidiaries
Prior fiscal period (from July 1, 2018 to December 31, 2018)
Not applicable.
Current fiscal period (from January 1, 2019 to June 30, 2019)
Not applicable.
- 15 -

4.Officers and major individual unitholders
Prior fiscal period (from July 1, 2018 to December 31, 2018)
Not applicable.
Current fiscal period (from January 1, 2019 to June 30, 2019)
Not applicable.
[NOTES ON ASSET RETIREMENT OBLIGATIONS]
Prior fiscal period (from July 1, 2018 to December 31, 2018)
Not applicable.
Current fiscal period (from January 1, 2019 to June 30, 2019)
Not applicable.
[NOTES ON INVESTMENT AND RENTAL PROPERTY]CSIF has renewable energy power generation facilities, etc. The book value, change during the period and fairvalue at the end of the period are as shown below.
(Unit: thousand yen)
Prior fiscal period
From July 1,2018
to December 31, 2018

Current fiscal period
From January 1, 2019
to June 30, 2019

Book value (Note 2)
Beginning balance

31,110,561

42,077,910

Change during theperiod (Note 3)

10,967,348

598,784

Ending balance

42,077,910

42,676,695

Fair value at the end of the period(Note 4)47,099,500

50,026,000(Note 1) The real estate that CSIF holds is real estate to be provided for the use of renewable energy power generation facilities, and thus withrespect to the book value and the fair value, the amount of the renewable energy power generation facilities and real estate are stated
together as one.
(Note 2) The book value is the amount at acquisition cost less the accumulated depreciation.
(Note 3) The change during the period ended December 31, 2018 primarily consisted of the increase due to acquisition of three photovoltaic
power generation facilities (11,651,820 thousand yen), and the decrease due to depreciation expenses (713,168 thousand yen). And
the change during the period ended June 30, 2019 primarily consisted of the increase due to acquisition of two photovoltaic power
generation facilities (1,357,292 thousand yen), and the decrease due to depreciation expenses (813,047 thousand yen).
(Note 4) The fair value is the total sum of the intermediate values according to Article 41, paragraph 1 of the CSIF's Articles of Incorporation on
the basis of the appraised value in the range stated in the valuation report with the date of the value opinion on December 31, 2018 andJune 30, 2019, which was obtained from PricewaterhouseCoopers Sustainability LLC or Ernst & Young Transaction Advisory Services
Co., Ltd..

In addition, profits and losses from the renewable energy power generation facilities, etc. for the fiscal period ended
December 31, 2018 (the 3rd period) and the fiscal period ended June 30, 2019 (the 4th period) are as stated in the“Notes to statement of income” above.

- 16 -

[NOTES ON SEGMENT INFORMATION]
1.Segment information
Since CSIF has a single segment of the rental business of infrastructure assets, the segment information isomitted.
2.Related Information
Prior fiscal period (from July 1, 2018 to December 31, 2018)(1) Information on products and services
Information is omitted because operating revenue from a single product/service to outside customers
exceeds 90% of the operating revenue on the statement of income.
(2) Information on regions① Operating revenue
Information is omitted because operating revenue from outside customers in Japan exceeds 90% of theoperating revenue on the statement of income.
② Property and equipment
Information is omitted because the amount of property and equipment located in Japan exceeds 90% of theamount of property and equipment on the balance sheet.

(3) Information on major customers（unit: thousand yen）
Name of customer

Total net revenue

Tida Power 01 G.K.

Univergy 23 G.K.

CLEAN ENERGIES XXI G.K.

Univergy 10 G.K.

Name of related segment

1,529,305

Renewable energy power
generation facilities, etc. rental
business

10,868Renewable energy power
generation facilities, etc. rental
business

241,089

Renewable energy power
generation facilities, etc. rental
business

3,984

Renewable energy power
generation facilities, etc. rental
business

Current fiscal period (from January 1, 2019 to June 30, 2019)(1) Information on products and services
Information is omitted because operating revenue from a single product/service to outside customers
exceeds 90% of the operating revenue on the statement of income.
(2) Information on regions① Operating revenue
Information is omitted because operating revenue from outside customers in Japan exceeds 90% of
the operating revenue on the statement of income.
② Property and equipment
Information is omitted because the amount of property and equipment located in Japan exceeds 90% of
the amount of property and equipment on the balance sheet.

- 17 -

(3) Information on major customers（unit: thousand yen）
Name of customer

Total net revenue

Name of related segment

2,038,531

Renewable energy power
generation facilities, etc. rental
business

CLEAN ENERGIES XXI G.K.

99,893

Renewable energy power
generation facilities, etc. rental
business

Univergy 01 G.K.

17,006

Renewable energy power
generation facilities, etc. rental
business

CLEAN ENERGIES SOLUTIONS
K.K.

29,758Renewable energy power
generation facilities, etc. rental
business

Tida Power 01 G.K.

[NOTES ON PER UNIT INFORMATION]
Prior fiscal period
From July 1,2018
to December 31, 2018

Current fiscal period
From January 1, 2019
to June 30, 2019

96,523 yen
1,932 yen

95,996 yen
3,072 yen

Net assets per unit
Net income (Net loss) per unit

(Note 1) Net income (Net loss) per unit is calculated by dividing net income (net loss) by the average number of investment units during theperiod. In the previous fiscal period, a loss was posted and there were no dilutive investment units, and thus diluted loss per unit is
not stated. With respect to diluted profit per unit for the period under review, there are no dilutive investment units, and thus thestatement is omitted.
(Note 2) The basis of calculation of net income (net loss) per unit is as follows.

Prior fiscal period
From July 1,2018
to December 31, 2018

Current fiscal period
From January 1, 2019
to June 30, 2019

412,187

710,419--

412,187

710,419

213,246

231,190

Net income (Net loss) (Thousand yen)Amount not attributable to common unit holders(Thousand yen)
Net income (Net loss) attributable to Common unit
holders (Thousand yen)
Average number of investment units during theperiod (Units)[NOTES ON FACTS ARISING AFTER THE SETTLEMENT OF ACCOUNTS]
Not applicable- 18 -

(7)【Supplementary Schedules】
1. Schedule of Securities
Not applicable.
2. Status of Contract Amounts, etc. and Estimated Fair Value of Derivative Transactions and Forward Exchange
Transactions(Unit: thousand yen)Contract amount, etc. (Note 1)
Fair value
Category
Type(Note 2)Longer than one year
OTC
(over-thecounter)

Interest rate swap transactions
pay-fixed, receive-variable
Total

22,012,204

20,811,569-

22,012,204

20,811,569-(Note 1) The contract amount, etc. of interest rate swap transactions is based upon Notional principal amount.
(Note 2) Fair value is omitted because the transaction meets the requirement for special treatment based on the
Accounting Standard for Financial Statements

3. Schedule of Assets Related to Real Estate
Not applicable.
4. Schedule of Assets Related to Renewable Energy Power Generation Facilities(Unit: million yen)

Asset TypeBalance
Increase Decrease Balance
as ofduring the during the as of June
January 1,
periodperiod30, 2019
2019

Accumulated
depreciation or
accumulated
amortization

Net balance
as of June Remarks
Depreciation 30, 2019
during theperiodStructures

797

38

-

835

45

17

790

(Note)

Machineryandequipment

37,427

1,182-

38,6102,191

785

36,418(Note)

Tools,
Property
furnitureandandfixturesequipment

505

15

-

521

32

10

488

(Note)

4,309

157

-

4,466

-

-

4,466

(Note)

6

-

6

-

-

-

-

43,0461,393

644,4332,269

813

42,164

Leaseholdrights

494

17

-

512

-

-

512

Software

3

0

-

3

1

0

2

Total

498

18

-

516

1

0

515

Land
Constructionin progress
Total

Intangible
assets(Note)(Note) The “Increase during the Period” is entirely due to the acquisition of Photovoltaic power generation facilities (March 1, 2019 and March 29,2019).

5. Schedule of Other Specified Assets
Not applicable.
6. Schedule of Investment Corporation Bonds
Not applicable.

- 19 -

7. Schedule of Loans Payable

Category

LenderBalance Increase Decrease
Balance as
Averageas ofduringduringof June 30,
interest
January
the
the
2019
rate (%)
1, 2019
periodperiod(million(Note 1)(million(million(million
yen)
yen)
yen)
yen)

Shinsei Bank,
Limited

2,261

-

60

2,201

Mizuho Bank,
Ltd.

1,413

-

37

1,375

Sumitomo
Mitsui
Banking
Corporation

1,413

-

37

1,375

MUFG Bank,
Ltd.

942

-

25

917

Resona Bank,
Limited

1,696

-

45

1,650

ORIX Bank
Corporation

942

Repayment
date

Repayment
methodUse

RemarksForacquisiti

Long
-term
loans
payable

on of
the

-

25

917 0.84500 October 31,(Note 2)2027

Repayment acquiredin partial
installments

The
Hiroshima
Bank, Ltd.

1,696

The Nanto
Bank, Ltd.

1,696

-

45

1,650

The Oita
Bank,Ltd.

848

-

22

825

The Shonai
Bank, Ltd.

848

-

22

825

The Mie Bank,
Ltd.

188

-

5

183

The Tochigi
Bank, Ltd.

848

-

22

825

Sumitomo
Mitsui
Banking
Corporation

844

-

23

820 0.57636

ShinseiBank,
Limited

1,689

-

41

1,647

Sumitomo
Mitsui
Banking
Corporation

1,689

-

41

1,647

48

1,903 1.04200 September 6, in partial
installments(Note2)
2028

-

45

assets
and
other

1,650

relatedcosts.

(Note 4)

February 1,
2021

Repaymentin partial(Note 4)

installments

Repayment (Note 4)

MUFG
Bank, Ltd.

Unsecured
Unguaranteed

1,951

-

- 20 -

Unsecured
Unguaranteed

Unsecured
Unguaranteed

The Nanto
Bank, Ltd.

975

-

24

951

The
Ashikaga
Bank,Ltd.

1,000

-

24

975

The
Hiroshima
Bank, Ltd.

500

-

12

487

ShinseiBank,
Limited

318

-

318

-

The earlier dateof(i)June30,2020or (ii)the first

Sumitomo
Mitsui
Banking
Corporation

318

MUFG
Bank, Ltd.

212

-

212

-

ShinseiBank,
Limited

-

700

19

680

0.06183-

318-

UnsecuredLump-sum

repayment (Note 4) Unguaranteedinterest
payment dateat maturity

on or after the(Note 3)

consumption
tax refund date

0.52091

March 29,
2022

Repayment (Note 4)
in partial

Unsecured
Unguaranteed

installments

Total

24,297700

1,483

23,513

-

-

-

-

-

(Note 1) The average interest rate is the weighted-average figure during the period and is rounded to the sixth decimal place.
(Note 2) CSIF conducts interest rate swaps which fix interest rates to hedge interest rate risk, and the average interest rate is the weighted-average
figure during the period taking the effect of interest rate swaps into consideration.
(Note 3) CSIF repaid the funds borrowed on April 26, 2019.
(Note 4) Funds are used mainly for acquisition of renewable energy power generation facilities(Note 5) Scheduled redemption amounts of long-term loans payable within five years after the date of the balance sheet are as follows.

(Unit: thousand yen)
Within one
year
Long-term loans
payable1,286,149

Longer than
one yearwithin two
years

Longer than
two years
within threeyears

Longer than
three years
within fouryears

Longer thanfour years
within fiveyears

Longer than fiveyears

2,053,702

1,862,492

1,286,533

1,285,273

15,739,005- 21 -